Following the footsteps of crypto exchanges OKX and KuCoin, the giant crypto exchange Bitget has announced that it will strengthen its KYC policy. According to the announcement by Bitget, users who have not completed Level 1 KYC verification will only be able to perform certain operations such as withdrawal, canceling orders, and closing positions.
Users who have not completed Level 1 KYC verification will not be able to perform essential operations such as depositing funds, opening new positions, and placing orders. This means that Bitget users are obliged to undergo Level 1 KYC verification.
KYC, short for “Know Your Customer,” refers to the process of identifying and verifying customers for traditional financial institutions and crypto exchanges. This process involves collecting and verifying customers’ identity information and assessing customer-specific risks. KYC is primarily conducted to prevent money laundering (ML) and financing of terrorism (FT), verify customer identity, and comply with regulatory requirements.
When it comes to crypto exchanges, the importance of KYC increases. The inherent anonymity provided by cryptocurrencies creates an appeal for money laundering and other illegal activities. Therefore, financial service providers, including crypto exchanges, have KYC requirements in many countries.
When a user creates an account on a crypto exchange, they are usually required to provide their identity information, address, photo, and other personal details. The crypto exchange verifies these pieces of information to confirm the user’s real identity. This process helps the crypto exchange comply with legal requirements, detect illegal activities, and ensure the user’s security.